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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Shoibal Datta who wrote (45810)	4/23/2001 9:17:20 PM
From: Jerome	Read Replies (1) \| Respond to of 70976

The rate of order push outs and cancellations has slowed dramatically according to the earnings report from Kemet. From the report:". The backlog entering the June quarter is down substantially from the level going into the March quarter, but the rate of order cancellations and push-outs has slowed considerably. Selling prices for tantalum capacitors increased significantly during the March quarter, due to the dramatic rise in cost for tantalum material. We expect selling prices for tantalum capacitors to decline industry-wide as shortages in the world supply of tantalum material are alleviated. We expect that the gross margin percentage for fiscal 2002 will average in the range of 30% to 35%. We believe profitability for the June quarter should be the low point for this cycle, and we are encouraged by the fact that our distributors' capacitor inventories began to decline during March." In as much as Kemet is a producer of commodity capacitators that go into all sorts of gizmos their idea of a upswing in business should be noted. Earnings came in a nickel better than expected at .85 and $4.00 for the year. If you read the quarterly report, the CEO says that this is the tenth down cycle that he has been through. His perspectives are worth paying attention to. Jerome